The China Illusion Stops You From Recognizing Fraudulent Patterns At Chinese Companies

Asian Citrus Holdings claims to be doing well. And you believe they are? They are not doing well. They claim to have CNY 975 million in cash by June 2010. However, by December 2010, Wang Chow Tong along with his son Hung Wai Tong saw the need to raise even more cash by issuing even more shares. The proceeds from such issuance netted CNY 1,284 million. Now he claims to have CNY 2,232 million in cash.

Do you really think that a business that generates CNY 600 million every year would need even more cash from investors? Do you really think that a business that generates so much cash every year would need even more money than the cash already generated by the business itself?

Furthermore, Asian Citrus was incorporated in Bermuda. You will have no legal protection when it delists. Do you think a judge in a Caribbean island can enforce a judgement in China? Not even a judge in Delaware or Nevada will be able to accomplish such a feat, which is why investors of Chinese reverse mergers will never see their money back. Check what is happening at the delisted Chinese frauds. It is a never-ending nightmare for the Americans and Europeans who trusted the Chinese goons at the helm of the companies they invested in.

Moreover, their securities issuances, cash balances, fixed investments, financial statements, financial ratios, dividend payouts follow the same patterns found at other fraudulent Chinese companies. Asian Citrus is doing what other Chinese frauds did before. Check them out and compare them! They are copycats.

Stay away from Chinese companies! No one will protect you if you don't do so yourself. The Chinese government is not going to stop the fraudsters because they are in cahoots with them. Check the Chinese court rulings in the past years! Their abuses are blatant, and they are real.

Stop having a romantic perception of reality. These people are not your friends and are not trustworthy. They want to harm you by taking your money to use it for their own benefit. They have no integrity. They were raised with different values than ours. They are, in two words, your enemies. And they are going to be fully protected by the Chinese state against your fair claims. Check out the other cases of Chinese frauds!

The money trails being discovered by bankruptcy trustees show that the Chinese have been using the cash in lots of things, except the business itself. They have discovered that the former CEOs were really using the raised money (of the company) to build mansions and hotels and buy land across China and elsewhere. It is even possible that they are the owners of the house next door to yours!

Don't be so keen to jump into an investment just because you hear pompous phrases such as "China is growing at 9%" or "we're a leader in the world's fastest growing industry." They are nothing more than propaganda which keeps getting repeated over and over by the Chinese promoting their companies and by the mainstream media. Where were the headlines saying "China's money supply growing at 30%"?

If you choose to believe them, and they embezzle you, don't blame them, because now there are more stories than last year that serve as warnings for everyone investing in Chinese companies. You just have to be curious enough to look for those stories and read them with an open mind.